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liubo4ka [24]
3 years ago
15

Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products usin

g a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Long and Short, about which it has provided the following data: Long Short Direct materials per unit$15.00 $48.80 Direct labor per unit$17.60 $51.20 Direct labor-hours per unit 0.80 2.40 Annual production 40,000 20,000 The company's estimated total manufacturing overhead for the year is $4,547,200 and the company's estimated total direct labor-hours for the year is 80,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity MeasuresEstimated Overhead Cost Direct labor support (DLHs) $3,081,600 Setting up machines (setups) 441,600 Part administration (part types) 1,024,000 Total $4,547,200 Expected Activity Long Short Total DLHs32,000 48,000 80,000 Setups1,220 1,900 3,120 Part types980 2,860 3,840 The unit product cost of product Long under the company's traditional costing system is closest to:
Business
1 answer:
nlexa [21]3 years ago
5 0

Answer:

Unitary cost= $78.07

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 4,547,200 / 80,000

Predetermined manufacturing overhead rate= $56.84 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 56.84*0.8= $45.47

<u>Finally, the unitary cost:</u>

Unitary cost= 15 + 17.6 + 45.47

Unitary cost= $78.07

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1. A firm in a competitive market has the following cost structure: Output Total Costs 0 $10 1 $12 2 $15 3 $19 4 $24 5 $30 6 $37
iogann1982 [59]

Answer:

b. 6 units

Explanation:

Output     Revenue  Costs = Profit  ( Revenue - Costs)

   0                   0         10 =  -10

   1                    8         12 =  -4

   2                   16        15 =   1

   3                   24        19 =   5

   4                   32        24 =   8

   5                   40        30 =   10

   6                   48         37 =   11

   7                   56        46 =   10

   8                   64        55 =   9

   9                   72        65 =    7  

Note: The revenue is calculated by multiplying output by the market price of $8.

The firm should produce 6 units to maximize their profit which is $11.

3 0
3 years ago
Gummy Co. purchased merchandise on June 10 at a $9,000 invoice price with terms of 2/10,n/30 and paid for the merchandise on Jun
Olenka [21]

Answer:

June 10

Debit Purchases for $9,000: Gross method

June 30

Debit Discounts lost for $180: Net method

June 30

Credit Cash for $9,000 : Both methods

Explanation:

To Illustrate the required journal entries to record and pay for this purchase under the GROSS METHOD and NET METHODS by matching the action on the left with the method on the right using a PERIODIC INVENTORY SYSTEM.

June 10

Debit Purchases for $9,000: Gross method

June 30

Debit Discounts lost for $180: Net method

(2%*$9,000)

June 30

Credit Cash for $9,000 : Both methods

6 0
3 years ago
Hepburn Company transferred $58,000 of accounts receivable to a local bank. The transfer was made without recourse. The local ba
vivado [14]

Answer: $11420

Explanation:

The amount that Hepburn will show as an amount receivable from factor will be the estimated fair value of the interest in receivables minus the factoring fee given in the question. This will be:

= $12,000 - ($58,000 × 1%)

= $12,000 - ($58,000 × 0.01)

= $12,000 - $580

= $11,420

8 0
2 years ago
Johnson Controls, Inc. produces the seats for the Dodge Neon. Although Johnson initially was able to meet Dodge's cost target, i
matrenka [14]

Johnson Controls and Dodge engaged in<u> Reverse Marketing.</u>

<h3>What is Reverse Marketing</h3>

Reverse Marketing can be defined as a type of marketing in which the customer are the one that patronized your a company business instead of the company creating brand or product awareness to the consumer.

This type of marketing strategy enables customer to be attracted to your business just as in the case of Johnson controls and its consumer Dodge.

Therefore  Johnson Controls and Dodge engaged in<u> Reverse Marketing.</u>

<u></u>

Learn more about reverse marketing here:brainly.com/question/25754149

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7 0
2 years ago
Suppose 30% of a club are above 25 years old (M), 50% are between 21 and 25 (W) and 20% are below 21 (L). If all are exposed to
valina [46]

Answer:

The probability that a person selected at random has virus and is aged between 21 and 25 is 0.58.

Explanation:

let A be the event that the selected person has a virus.

let B1, B2 and B3 be the events that the selected perosn is  M, W and L accordingly.

the probabilities are given by:

P(B1) = 0.3

P(B2) = 0.5

P(B3) = 0.2

P(A|B1) = 0.65

P(A|B2) = 0.82

P(A|B3) =  0.5

probability of having virus and aged between 21 and 25 is given by:

[P(B2)*P(A|B2)]/[P(B1)*P(A|B1) + P(B2)*P(A|B2) + P(B3)*P(A|B3)]

= [(0.5)*(0.82)]/[(0.3)*(0.65) + (0.5)*(0.82) + (0.2)*(0.5)]

= 0.58

Therefore, the probability that a person selected at random has virus and is aged between 21 and 25 is 0.58.

8 0
2 years ago
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